In the late 19th century, the cash register was a complex mechanical device built with moving parts, gears, cams, and levers, all housed in a large chassis. Its function extended beyond simply processing cash; it was a combination of a security system, an accounting machine, and a management information system. Cash registers were even used to manage credit, helping shopkeepers track amounts due and paid.
Due to their mechanical complexity and diverse functionality, cash registers in the 1870s were quite expensive. While there’s no exact figure on the cost, it can be inferred that they were a significant investment for business owners. For instance, the New York City Cash Register Company’s cash register was marketed in early 1878 for $75, a considerable sum at the time.
Before the advent of the cash register, shop owners often relied on handwritten ledgers to track sales transactions. However, this method was inefficient and prone to errors due to employee negligence, illiteracy, laziness, or dishonesty. The fact that cash was often kept in open cash boxes or even in employees’ pockets further increased the risk of loss.
Cash registers were heavily advertised as an anti-theft solution. By printing the transaction amount on a receipt for the customer and on an audit tape locked inside the machine, cash registers brought transparency to transactions and allowed owners to compare total sales with the cash in the drawer. This capability significantly minimized losses due to employee theft.
Beyond preventing theft, cash registers provided business owners with valuable insights into their operations. They allowed for the tracking of daily sales by product category and transaction type, providing valuable data for business decision-making. These features made the cash register a crucial tool for the success of retail businesses.
Despite the high initial cost, the value that cash registers provided in terms of security, management, and business intelligence made them a sound investment for many shopkeepers in the 1870s. This innovation laid the foundation for the development of the modern office equipment industry.
